[ Cloud Computing ] Re: Cloud Computing ROI model

I agree with Shane, and this is why I'm cautious about the "it'll just be cheaper on the cloud" business model justification.   If CC is just a "reduced operating costs" play, it's going to be a hard sell for a long time, for all the reasons Shane identifies.  IMO the thing that will make CC explode is something new - something that one or two of you out there are thinking about, but you are either not certain, or you want to keep to yourself :)

John

On Wed, Dec 24, 2008 at 11:12 AM, Shane Brauner <shane.brauner@gmail.com> wrote:

In fairness, if you don't take those things into consideration in the cost of switching, it's going to be a mess.  Working with a big pharma client who was outsourcing all their IT to external providers proved this.  The initial calculations really just focused on the ledger costs - headcount, power, cooling, server costs, etc.  They did not take into account things like process/procedure changes required for the business, ramp up/migration times, service delivery differences, etc.  These were initially brushed aside and hand-waved away, but the issues related to these things crept into the hundreds of millions of dollars of consequences. 

My advice - don't ignore the soft stuff.  It matters.

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